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DERIVATIVE INSTRUMENTS (Tables)
 9 Months Ended
Sep. 30, 2022
General Discussion of Derivative Instruments and Hedging Activities [Abstract]  
Schedule of Open Fixed Price Swap Positions and Natural Gas Basis Swap Positions
Below is a summary of the Company’s open fixed price swap positions as of September 30, 2022. 
IndexDaily VolumeWeighted
Average Price
Natural Gas(MMBtu/d)($/MMBtu)
Remaining 2022NYMEX Henry Hub270,000 $2.96 
2023NYMEX Henry Hub165,014 $3.64 
2024NYMEX Henry Hub54,973 $3.98 
Oil(Bbl/d)($/Bbl)
Remaining 2022NYMEX WTI3,000 $66.03 
2023NYMEX WTI3,000 $74.47 
NGL(Bbl/d)($/Bbl)
Remaining 2022Mont Belvieu C34,000 $36.62 
2023Mont Belvieu C33,000 $38.07 
The Company entered into costless collars based off the NYMEX WTI and Henry Hub oil and natural gas indices. Each two-way price collar has a set floor and ceiling price for the hedged production. If the applicable monthly price indices are outside of the ranges set by the floor and ceiling prices in the various collars, the Company will cash-settle the difference with the hedge counterparty. Below is a summary of the Company's costless collar positions as of September 30, 2022.
IndexDaily VolumeWeighted Average Floor PriceWeighted Average Ceiling Price
Natural Gas(MMBtu/d)($/MMBtu)($/MMBtu)
Remaining 2022NYMEX Henry Hub389,500 $2.54 $2.96 
2023NYMEX Henry Hub285,000 $2.93 $4.78 
2024NYMEX Henry Hub80,000 $3.63 $7.02 
Oil(Bbl/d)($/Bbl)($/Bbl)
Remaining 2022NYMEX WTI1,500 $55.00 $60.00 
Below is a summary of the Company's open sold call option positions as of September 30, 2022.
IndexDaily VolumeWeighted Average Price
Natural Gas(MMBtu/d)($/MMBtu)
Remaining 2022NYMEX Henry Hub152,675 $2.90 
2023NYMEX Henry Hub407,925 $2.90 
2024NYMEX Henry Hub202,000 $3.33 
2025NYMEX Henry Hub33,315 $4.65 
Schedule of Natural Gas Basis Swap Positions
In addition, the Company entered into natural gas basis swap positions. As of September 30, 2022, the Company had the following natural gas swap positions open:
Gulfport PaysGulfport ReceivesDaily VolumeWeighted Average Fixed Spread
Natural Gas(MMBtu/d)($/MMBtu)
2023Rex Zone 3NYMEX Plus Fixed Spread40,000 $(0.21)
Schedule of Derivative Instruments in Balance Sheet The following table presents the fair value of the Company’s derivative instruments on a gross basis at September 30, 2022 and December 31, 2021 (in thousands):
Successor
September 30, 2022December 31, 2021
Short-term derivative asset$53,342 $4,695 
Long-term derivative asset24,335 18,664 
Short-term derivative liability(817,384)(240,735)
Long-term derivative liability(299,150)(184,580)
Total commodity derivative position$(1,038,857)$(401,956)
Schedule of Net Loss on Derivatives
The following tables present the gain and loss recognized in net loss on natural gas, oil and NGL derivatives in the accompanying consolidated statements of operations for the Current Successor Quarter, Current Successor YTD Period, Prior Successor Quarter, Prior Successor Period, and Prior Predecessor YTD Period (in thousands):
Net loss on derivative instruments
Successor
Three Months Ended September 30, 2022Three Months Ended September 30, 2021
Natural gas derivatives - fair value losses$(161,532)$(517,799)
Natural gas derivatives - settlement losses(354,084)(82,566)
Total losses on natural gas derivatives(515,616)(600,365)
Oil derivatives - fair value gains (losses)33,545 (1,590)
Oil derivatives - settlement losses(9,035)(4,336)
Total gains (losses) on oil and condensate derivatives24,510 (5,926)
NGL derivatives - fair value gains (losses)19,043 (10,201)
NGL derivatives - settlement losses(2,832)(5,984)
Total gains (losses) on NGL derivatives16,211 (16,185)
Total losses on natural gas, oil and NGL derivatives$(474,895)$(622,476)
Net loss on derivative instruments
SuccessorPredecessor
Nine Months Ended September 30, 2022Period from May 18, 2021 through September 30, 2021Period from January 1, 2021 through May 17, 2021
Natural gas derivatives - fair value losses$(659,193)$(638,063)$(123,080)
Natural gas derivatives - settlement losses(754,177)(89,255)(3,362)
Total losses on natural gas derivatives(1,413,370)(727,318)(126,442)
Oil derivatives - fair value gains (losses)8,076 (6,947)(6,126)
Oil derivatives - settlement losses(31,460)(4,336)— 
Total losses on oil and condensate derivatives(23,384)(11,283)(6,126)
NGL derivatives - fair value gains (losses)14,216 (17,549)(4,671)
NGL derivatives - settlement losses(13,779)(5,984)— 
Total gains (losses) on NGL derivatives437 (23,533)(4,671)
Total losses on natural gas, oil and NGL derivatives$(1,436,317)$(762,134)$(137,239)
Schedule of Recognized Derivative Assets The following tables present the gross amounts of recognized derivative assets and liabilities in the consolidated balance sheets and the amounts that are subject to offsetting under master netting arrangements with counterparties, all at fair value (in thousands):
Successor
As of September 30, 2022
Gross Assets (Liabilities)Gross Amounts
Presented in theSubject to MasterNet
Consolidated Balance SheetsNetting AgreementsAmount
Derivative assets$77,677 $(72,718)$4,959 
Derivative liabilities$(1,116,533)$72,718 $(1,043,815)
Successor
As of December 31, 2021
Gross Assets (Liabilities)Gross Amounts
Presented in theSubject to MasterNet
Consolidated Balance SheetsNetting AgreementsAmount
Derivative assets$23,359 $(20,265)$3,094 
Derivative liabilities$(425,315)$20,265 $(405,050)
Schedule of Recognized Derivative Liabilities The following tables present the gross amounts of recognized derivative assets and liabilities in the consolidated balance sheets and the amounts that are subject to offsetting under master netting arrangements with counterparties, all at fair value (in thousands):
Successor
As of September 30, 2022
Gross Assets (Liabilities)Gross Amounts
Presented in theSubject to MasterNet
Consolidated Balance SheetsNetting AgreementsAmount
Derivative assets$77,677 $(72,718)$4,959 
Derivative liabilities$(1,116,533)$72,718 $(1,043,815)
Successor
As of December 31, 2021
Gross Assets (Liabilities)Gross Amounts
Presented in theSubject to MasterNet
Consolidated Balance SheetsNetting AgreementsAmount
Derivative assets$23,359 $(20,265)$3,094 
Derivative liabilities$(425,315)$20,265 $(405,050)